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Tesla Posts Biggest Quarterly Loss, Slashes Production of Model X and Model S (yahoo.com)
Tesla has reported the largest quarterly loss in its history, and said it was cutting production of its Model S and Model X vehicles. Here are the key third-quarter numbers with expectations via Bloomberg: Adjusted loss per share: -$2.92 (-$2.23 expected); Revenue: $2.98 billion ($2.39 billion expected); Free cash flow: -$1.4 billion (-$1.2 billion (expected). Yahoo News reports: The company said it plans to produce 10% fewer units of its Model S and Model X models in the fourth quarter and reallocate resources to the Model 3, its newest. Tesla expects to hit a Model 3 production rate of 5,000 vehicles per week by late Q1 2018. "While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear," Tesla said in its statement. Tesla said in October that it produced only 260 vehicles, well below its target of 1,500. CEO Elon Musk said the Model 3 was "deep in production hell."
As Mark Twain said, it is difficult to make predictions, particularly about the future.
Ok, So who unplugged the reality distortion field? Unicorns are falling from the sky and moonbeams can hardly be seen emanating form the Tesla factories.
Is anyone surprised? I'm not. After all, when production numbers were low, what did Musk do? He started firing people in mass. I guess he's the only one left piecing parts of the Model 3 together while he isn't sleeping. Not bad, though. He can put 8 or 9 together a day.
I do have to wonder, though, what are they spending all of that money on?
I hope it ramps back up soon! So many pessimists in this crowd, when Elon is our best shot at an EV future.
...when government subsidy is our best shot at an EV future.
Perhaps his business model should stop depending on free tax payer money.
Making cars is expensive. Making high tech cars is more expensive.
Tesla isn't magic. Look at the sales numbers the big three have and how often they turn out new programs (that aren't really an entirely new product). The math is pretty simple. Tesla doesn't make enough money in their product line and is turning out a new program when the old ones aren't paying for themselves.
It's a stock market thing, really. Look at the stock prices of the automakers. They continue to make successful products but their stock price doesn't increase. Yet a company like Apple hasn't put out a really innovative product in years, is getting destroyed by Samsung..... but continues to be a stock market darling.
Welcome to the irrational world.
Sure, making so-called high-tech cars is not super easy, it's really hard to make any money selling cars when you cannot produce enough.
Also, since when are Tesla's cars "high tech". They are just reliability-riddled electric cars with fancy computers. More technology has been developed for the "run-of-the-mill" cars made by companies like Ford and Toyota than Tesla has. That tech, though, is just unappreciated, overlooked, and made to look easy by consummate automotive professionals that know what they are doing.
But... but ...MUSK!
If you do not agree with the Muskovites your are a hater.
New Zealanders are well balanced with a chip on each shoulder. One represents Australia, the other the rest of the world
Yes, I'm sure they are unaware of what Tesla is doing.
Which wasn't an answer to the point I posed. My point was about the dead-on-arrival technology of Hydrogen Fuel cells, not Tesla.
They produce millions of cars a year. If the market was demanding EVs they would be making them. We aren't there yet.
I'm afraid you are ignorant of the market. There is a demand for Bolt (Ampera E in Europe) that is not bieng fulfilled by GM. In fact you can't even order the Ampera E in Europe any more as they have no stock being delivered.
Similarly with Hyundai and the Ioniq EV. Current waiting times are 9-10 months from order.
It's a fact that the demand there and GM and Hyundai are unable to fullfill it.
And I didn't even mention the other car manufacturers that don't even have a credible EV yet.
Doing as well as Tesla? Tesla sells a rounding error worth of cars each year in comparison to the traditionals.
Again you are being mislead by old technology. We're talking about their ability to service the EV market. The number of old tech ICE vehicles they produce is irrelevant. As you can see from the Bolt and Ioniq examples I gave.
That said, detailed videos of the model 3 are appearing and it's still a stylish, well designed, technologically advanced vehicle. After tens of thousands of cars have rolled off the production line and their owners have beta tested the bugs out it, I think it will become a classic.